In Short : Adani Ports has achieved the top position for its climate actions and environmental performance. This recognition highlights the company’s commitment to sustainable practices and signifies its efforts in mitigating climate change and contributing to environmental conservation.
In Detail : Around 23,000 companies, worth over half of the global listed market cap, participated in the assessment performed by the CDP on behalf of the investors representing an AUM of over $136 trillion.
The Adani Ports and Special Economic Zone Ltd (APSEZ), the country’s largest port operator, has secured top position for its climate actions and environmental performance in assessments done by four global rating agencies, the company said in a statement on Sunday.
The CDP assigned leadership band “A-” to APSEZ, recognising the company’s efforts in implementing the current best practices to tackle climate change risks and opportunities, the firm said.
Around 23,000 companies, worth over half of the global listed market cap, participated in the assessment performed by the CDP on behalf of the investors representing an AUM of over $136 trillion.
Adani Ports, the port operator and logistics company of the Adani Group, received the highest rating of “A” for its emission reduction initiatives, climate governance, and risk management processes.
“APSEZ has also secured the top position in the environmental dimension of the S&P Global Corporate Sustainability Assessment (CSA) 2023 among the 324 leading players in the Global Transportation and Transportation Infrastructure sector, which includes marine ports, shipping, air, road and rail transport, logistics, mass transit system and other transportation businesses,” it said.
The environmental pillar provides 56 per cent weight for climate indicators and strategy, with Adani Ports improving its score for the third consecutive year to achieve the top position.
On the overall ESG assessment, Adani Ports with a 96 percentile score stood among the top 15 leading companies in the sector globally and was the only port operator to feature on the list.
The Sustainalytics Low Carbon Transition Rating has also assigned the top rank to Adani Ports in the ports sector during their January 2024 update. The indicator measures the alignment of the projected emissions of the company with the global net zero target.
While Sustainalytics found the company’s current projected emissions in line for a 1.7oC rise in global temperature, Adani Ports said it had already announced its commitment to reach net zero by 2040, a decade earlier than the requirement for the global GHG emissions to hit net zero to keep to 1.5oC.
On the overall environmental dimension covering biodiversity & land use, emission and pollution control, and waste management, Sustainalytics has assigned a low to negligible risk rating to Adani Group company on account of a “strong risk management framework that the company has implemented”.
Adani Ports said it has also received an ‘advanced’ rating in the last Energy Transition Rating from Moody’s. Furthermore, Moody’s evaluated APSEZ on an environmental, social, and governance basis in 2022, wherein the company secured first rank in the Transport and Logistics sector and ninth across all sectors/industries in the Global Emerging Markets.
In India, APSEZ was ranked 1st on ESG performance across all the sectors. There were 4,885 companies globally that were evaluated by the rating agencies on a range of ESG indicators, policies, processes, and systems. The next assessment by Moody’s is likely this year.